The Palace is open to consultations with stakeholders regarding the proposed removal of system loss charges from consumers’ electricity bills.
This comes after power providers raised concerns over who would shoulder the cost of system loss, the electrical energy generated but not delivered to customers, if the charge is removed. They emphasized that the losses are neither the fault of industry players nor consumers.
‘It is really better for all stakeholders who have similar concerns to be heard, because any possible issues can be addressed and resolved. This way, the burden will not fall on everyone, and this is also for the benefit of our fellow citizens,’ Palace Press Officer Claire Castro said in Filipino at a briefing.
‘We will help our fellow citizens, but of course, those involved in this industry should not be overly burdened by the issues that may arise from this matter. Therefore, all of these concerns should be given proper solutions,’ she added.
Meralco’s Pangilinan’s sentiment
Castro also acknowledged Meralco Chairman and Chief Executive Officer Manuel Pangilinan’s sentiment that removing the system loss charge from electricity bills could result in costs that are ‘too big’ for power industry players to absorb.
‘That is a good sign, although there will certainly be many studies to undertake and many stakeholders may be affected. At least, we can see that they are open to discussions,’ the Palace official said.
Citing a statement from Energy Secretary Sharon Garin, Castro said the Department of Energy is reviewing the regulations of the Energy Regulatory Commission, relevant legislation, and other policies while conducting consultations with stakeholders.
‘The objective is to lower electricity rates, and I ask for the patience and cooperation of all stakeholders while we craft the policies,’ Garin said.